TORONTO, ONTARIO–(Marketwired – Jan. 13, 2016) –
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Uranium Participation Corporation (TSX:U) (“UPC” or the “Corporation”) announced today that it has received approval from the Toronto Stock Exchange (the “TSX”) to acquire for cancellation, by way of normal course issuer bid (the “Bid”) up to 10,192,641 common shares of the Corporation (“Shares”), which, at the date hereof, represents approximately 10% of the public float. As of January 4, 2016, 115,648,713 Shares of the Corporation were outstanding. Daily purchases will be limited to 39,633 Shares, other than block purchase exceptions, which represents 25% of the average daily trading volume.
The purchases may commence on January 18, 2016 and will terminate on January 17, 2017 or on such earlier date as UPC completes its purchases. The purpose for the Bid is to provide UPC with a mechanism to decrease the potential spread between the net asset value per Share and the market price of the Shares.
Purchases will be made by the Corporation in accordance with TSX requirements, and the price which the Corporation will pay for any Shares will be the market price of the Shares at the time of acquisition. All purchases will be effected through the facilities of TSX or other alternative Canadian marketplaces. The actual number of Shares which may be purchased and the timing of such purchases will be determined by the Corporation. Decisions regarding purchases will be based on market conditions, share price, best use of available cash, and other factors. All purchased Shares will be cancelled.
The Corporation completed a normal course issuer bid in November 2015 through the facilities of the TSX pursuant to which it acquired 1,224,200 Shares at an average price of approximately $5.31 per Share. All purchased Shares were cancelled.
To the knowledge of the Corporation, no director, senior officer or other insider of the Corporation currently intends to sell any Shares under the Bid. However, sales by such persons through the facilities of TSX may occur if the personal circumstances of any such person change or if any such person makes a decision unrelated to these normal course purchases. The benefits to any such person whose Shares are purchased would be the same as the benefits available to all other holders whose Shares are purchased.
A copy of the Corporation’s Notice filed with the TSX may be obtained, by any shareholder without charge, by contacting UPC’s Corporate Secretary.
CAUTION REGARDING FORWARD LOOKING INFORMATION
Certain of the statements contained herein may contain forward looking statements and forward looking information that are based on the Corporation’s current internal expectations, estimates, assumptions and beliefs. Forward looking statements generally can be identified by the use of forward looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “should”, “believe” or “continue” or the negative thereof or variations thereon or similar terminology. In this press release, these forward looking statements relate to the Corporation’s intention to purchase shares under the Bid, the receipt of the required regulatory approval, and the number of Shares that may be purchased under the Bid.
By their very nature, forward looking statements involve numerous assumptions and estimates. The Corporation has made certain assumptions about the forward looking statements and information contained herein, including its ability to acquire Shares in the market through the Bid and in compliance with regulatory requirements. A variety of factors, many of which are beyond the control of the Corporation, may cause actual results to differ materially from the expectations expressed in the forward looking statements, such as future market conditions and the behaviors of other market participants. For a list of the principal risks of an investment in UPC, please refer to the “RISK FACTORS” section of the Corporation’s Annual Information Form dated May 11, 2015, as updated in the Corporation’s quarterly financial reports, all of which available on UPC’s website and SEDAR. These and other factors should be considered carefully, and readers are cautioned not to place undue reliance on these forward looking statements. Although management reviews the reasonableness of its assumptions and estimates, unusual and unanticipated events may occur which render them inaccurate. Except where required under applicable securities legislation, the Corporation does not undertake to update any forward looking information.
About Uranium Participation Corporation
Uranium Participation Corporation is a company that invests substantially all of its assets in uranium oxide in concentrates (“U3O8”) and uranium hexafluoride (“UF6”) (collectively “uranium”), with the primary investment objective of achieving appreciation in the value of its uranium holdings. Additional information about Uranium Participation Corporation is available on SEDAR at www.sedar.com and on Uranium Participation Corporation’s website at www.uraniumparticipation.com.